🏆 Top 8 Finalist · Wharton Alliance

Wharton Alliance
Diversity Case Competition

Developed a self-funding ESG transformation strategy for a $240M Bangladeshi garment manufacturer — turning $15.4M in operational waste into the engine for labor compliance, environmental upgrades, and commercial resilience. Presented live at Wharton to McKinsey & Company judges.

Competition 12th Annual WACC
Date February 27, 2026
Host The Wharton School, UPenn
Judges McKinsey & Company
Result Top 8 of 25 Teams
Format 15-min Presentation + Q&A
$15.5M
Net Financial Improvement Modeled
Top 8
Finalist out of 25 Submissions
9:1
ROI — $1 Compliance = $9 Savings
$7M
Total Investment, Self-Funded
The Event

McKinsey × Wharton Alliance

The 12th Annual Wharton Alliance Diversity Case Competition brought together top graduate and undergraduate teams from across the country. Sponsored by McKinsey & Company, BCG, Capital One, L.E.K. Consulting, and Warburg Pincus, the competition challenged teams to develop actionable strategies addressing both competitiveness and social impact for a garment manufacturer facing an ESG crisis.

Linda Tali and Melita Wessely at the Wharton Alliance Case Competition
Linda Tali & Melita Wessely — Team 014 at Huntsman Hall, Wharton
McKinsey & Company welcome screen at the Wharton Alliance Event
McKinsey × Wharton Alliance Event — February 27, 2026
The Case

WuhLuhWa Apparel: A $240M Company in Crisis

WuhLuhWa Apparel Ltd., a mid-sized Bangladeshi garment manufacturer with 8 factories and 4,800 workers, faced three simultaneous pressures threatening its survival. Teams had 48 hours from case release to deck submission, with finalists presenting live to a McKinsey-led judging panel.

$15.4M

Cost & Capacity Squeeze

33% material loss rate (vs. 20% industry benchmark) = $15.4M annual waste. 23% capacity underutilization after losing a major client representing 18% of volume.

1,680

Labor & Social Pressure

Workers (35%) paid below legal minimum wage. 60% report workplace threats. Only 5% female supervisors despite 64% female workforce. 30% working illegal overtime.

$70–90M

Environmental & PFAS Risk

100% of garments contain PFAS. EU PFAS bans taking effect July 2026. $70–90M in EU market access at risk. 87% of regional surface water contaminated.

Our Solution

Targeted Transformation: Option B

"Profitability and responsibility aren't a trade-off — they're the same decision."
Core thesis of our presentation — every $1 invested in compliance generates $9 in operational savings

We evaluated three strategic paths: minimal compliance (too risky), targeted transformation (self-funding), and full premium repositioning (too capital-intensive). Our recommended Option B uses operational waste savings to entirely self-fund ESG compliance — requiring no external capital despite a $100M debt load.

01

Waste as the Cash Engine

Reduce fabric waste from 33% → 25% via AI-assisted cutting (Gerber, Optitex), lean/5S programs, and 3D digital sampling (CLO, Browzwear). $1M investment unlocks $15.4M annual savings at scale.

$15.4M/year savings
02

Labor & Gender Equity

Close the wage gap for 1,680 workers at $0.4M/year (0.17% of revenue). Scale female supervisors from 5% → 20% through a GEAR-style $300K intervention yielding $1.2M+ productivity gains.

$300K → $1.2M+ return
03

PFAS-Free EU Market Access

$2.5M capex + $1M/year ongoing for chemical substitution and water treatment upgrades. Protects $70–90M in EU market access as France, Denmark, and EU-wide PFAS bans take effect.

$1.5M/yr insures $70–90M
Our Presentation

20-Slide Deck: McKinsey Pyramid Structure

Our deck followed SCQA (Situation-Complication-Question-Answer) structure with answer-first slide titles, quantified assertions, and footnoted external sources. We delivered a 15-minute live presentation followed by 5 minutes of judge Q&A from McKinsey analysts.

Executive Summary slide showing Situation-Complication-Resolution framework
Executive Summary — SCQA Framework with Key Financial Targets
Three strategic options evaluated: minimal compliance, targeted transformation, and full premium repositioning
Three Paths Forward — Only One Is Sustainable (Option B Recommended)
Financial waterfall showing path from negative 9M to positive 6.5M net income
Financial Impact Waterfall — From –$9M to +$6.5M Net Income
Final conclusion slide with three pillars and four immediate action items
From Vulnerable Supplier to Resilient, Responsible Partner
Financial Model

From –$9M to +$6.5M Net Income

–$9M
2025
Net Income
+$15.4M
Fabric Waste
Savings
+$1.2M
Productivity
Gains
+$0.7M
ESG Contract
Premiums
–$0.4M
Wage
Compliance
–$1.5M
PFAS & Water
Upgrades
+$6.5M
Year 5
Net Income
7.5% → 14%
EBITDA Margin Improvement
$7M
Total 5-Year Investment
100%
Self-Funded via Waste Savings
Differentiation

Key Insights & Differentiators

Self-Funding Model

Operational waste savings fund 100% of ESG compliance costs — no external capital required despite the company's $100M debt load. This was the central innovation of our strategy.

The 80% Paradox

80% of workers report job satisfaction despite severe labor violations. We reframed this as "economic dependence, not well-being" — the insight that reshaped the entire labor strategy.

Gender Equity as ROI

A $300K GEAR-style intervention returns $1.2M+ in productivity gains — framed as a commercial lever, not CSR. Scaling female supervisors from 5% to 20% drives measurable output.

ESG as Pricing Power

Compliance milestones contractually linked to 1–2% buyer premiums via 3–5 year ESG-linked contracts, turning a cost center into $2.4–4.8M additional annual revenue.

The Team

Team 014

LT

Linda Tali

MS Business Information Technology, Drexel University · Strategy, Financial Modeling, Deck Design

MW

Melita Wessely

Teammate · Research, ESG Analysis, Presentation Delivery

My Contributions

What I Drove

Financial Modeling

Built the full P&L waterfall and 5-year ROI model

Strategy Architecture

Designed the three-pillar self-funding framework

Deck Design

20-slide McKinsey-structure presentation

AI/Digital Integration

AI cutting, 3D sampling, ESG dashboard strategy

ESG-Commercial Linkage

Buyer contract model tying premiums to milestones

Live Presentation

Co-presented to McKinsey judges + handled Q&A

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